XP Inc. Announces Share Purchase Agreement With Itaúsa

Rhea-AI Summary

XP Inc. (NASDAQ: XP) has entered into a share purchase agreement to acquire 5,500,000 Class A shares from Itaúsa S.A. for approximately $105 million. This purchase mirrors a prior transaction on November 9, 2022, where Itaúsa sold 10,000,000 shares. The company plans to utilize existing cash for this repurchase, with shares to be held in treasury, and emphasizes that this is not part of its previously announced Share Repurchase Program from May 11, 2022.

Positive

• XP is acquiring shares at a reasonable valuation of approximately $19.09 per share based on the total investment of $105 million.
• The share repurchase will potentially improve shareholder value by reducing the total shares outstanding.

Negative

• Using existing cash for the share repurchase may limit XP's financial flexibility for other investments or operational needs.

SÃO PAULO--(BUSINESS WIRE)-- XP Inc. (Nasdaq: XP), announced today that it has signed a share purchase agreement with Itaúsa S.A. Under this agreement, XP will purchase 5,500,000 outstanding Class A common shares from Itaúsa S.A., equivalent to approximately U$105 million, in the same conditions for which Itaúsa sold 10,000,000 Class A shares on November 9^th, 2022. XP should utilize its existing cash to fund this share repurchase and the shares should be held in treasury. This transaction is not part of the Share Repurchase Program announced by XP on May 11^th, 2022.

About XP

XP is a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil. XP’s mission is to disintermediate the legacy models of traditional financial institutions by:

• Educating new classes of investors;
• Democratizing access to a wider range of financial services;
• Developing new financial products and technology applications to empower clients; and
• Providing high-quality customer service and client experience in the industry in Brazil.

XP provides customers with two principal types of offerings, (i) financial advisory services for retail clients in Brazil, high-net-worth clients, international clients and corporate and institutional clients, and (ii) an open financial product platform providing access to over 800 investment products including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds (REITs) and others from XP, its partners and competitors.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," “aim,” "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond XP Inc’s control. XP, Inc’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: competition, change in clients, regulatory measures, a change the external forces among other factors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005609/en/

André Martins

Antonio Guimarães

Marina Montemor

Investor Contact: ir@xpi.com.br

IR Website: investors.xpinc.com

Source: XP Inc.

FAQ

What is the recent share purchase agreement by XP Inc.?

XP Inc. has signed an agreement to purchase 5,500,000 Class A shares from Itaúsa S.A. for about $105 million.

When was the share purchase agreement signed?

The share purchase agreement was announced on an unspecified date in the press release.

How much is XP Inc. spending on the share repurchase?

XP Inc. is spending approximately $105 million to acquire the shares.

What is the significance of the share purchase for XP Inc. investors?

The share purchase is expected to enhance shareholder value by reducing the number of shares outstanding, which could improve earnings per share.

Is this share purchase part of XP's previous share repurchase program?

No, this transaction is not part of the Share Repurchase Program announced on May 11, 2022.